Unsurprisingly, tractor sales fell in 2022. This was due to supply chain issues, a recession and rising interest rates, but can you guess which sector actually gained market share? That’s right, the most expensive units – combine harvesters.
According to the Association of Equipment Manufacturers (AEM), total U.S. ag tractor unit sales fell for 2022 over 2021. The below-40-HP segment led the losses with a 26.7% loss for December and a 19.3% loss for the whole of 2022.
Self-propelled combines, on the other hand, climbed 16.3% in December and finished the year at 15.8% overall. While 100-plus-HP tractors fell 2.7% for December, they also finished the year in the positive column with 11.3% growth. Some in the industry see this as a nod to the advantages of new technology.
Analysts said 2022 is seen as a corrective year to the markets of the pandemic years of 2020 and 2021. They say the increase in larger equipment sales balances the markets again and puts them on a more normalized trajectory.
As ag equipment manufacturers look forward to 2023, there is more talk of “deglobalization.” This is the practice of sourcing manufactured parts closer to the plant, thus decreasing reliance on transportation and logistics to get parts from one side of the world to the other.
Ag equipment dealerships continue to take orders for new equipment and work through the backlog of orders created by pandemic supply chain issues. They are confident that the backlog can be worked through in 2023.
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